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Trucking executives noted signs of a possible improvement in the trucking market this year, providing analysis during first-quarter earnings calls.
JB Hunt Transport Services, Wabash and Werner Enterprises provided hope for the kind of trucking market the industry could have this year.
Brent YeagyCEO and president of Wabash, doesn’t think the current slowdown in fares will carry over into next year.
“The decline in freight looks unlikely to last for the full year 2024,” he said February 1st.
The trailer maker’s executive noted that a relatively strong labor market, steady consumer spending, declining inflation and possible interest rate cuts put the U.S. on a recovery path. The firm is also monitoring market exit capacity and macro stockpiling decline.
Pressures continue as spot and contract prices suffer, particularly in dry cargo.
“From the truckers’ perspective, rates have to go up, and I can’t tell you exactly when that will happen,” said JB Hunt’s Brad Hicks, EVP of people and president of highway services. in January. He noted that given operating cost inflation and truck prices plummeting, “something’s got to give.”
While executives suggested that market dynamics could be uncertain as well as challenging in the near term, there was some clarity, even if the forecast was foreboding.
“Spot rates remain low and are not expected to improve until the second quarter,” said Werner CEO and President Derek Leathers he said on February 6. “A more balanced supply and demand environment in the second half will benefit us as we book more contract cargo at improved fares.”
Leathers showed 71 consecutive clean weeks deactivations and said the new activations “finally really fell off the cliff.”
At the same time momentum is building in Werner’s favor, a grim reality continues to show that auto carrier authority exits “are modest, leaving oversupply,” he said.